UPM Timber to begin negotiations on reorganisation and production curtailments

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(UPM, Lahti, 3 November 2010 at 11:00) – The UPM Timber business unit will begin negotiations on reorganisation of its operations in Finnish and Russian staff functions, production and in sales units abroad. The negotiations will also cover production curtailments in Finland for the year 2011.

The planned measures on operations would affect 52 salaried employees in staff functions and production units in Finland and Russia and in sales units abroad. The planned measures aim to improve the cost competitiveness of the business and to adjust the number of personnel to the new business operating model.

The weakening market situation, availability of cost competitive raw material and poor business profitability have also brought on a need to negotiate production curtailments in Finland for 2011. The possible temporary lay offs resulting from production curtailments are to be carried out according to mill-specific plans.

The negotiations will commence in week 45 and last approximately 6 weeks. UPM will prepare for possible reductions by compiling a transition security plan that will support the rapid re-employment of employees.